Question

Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity? c) What will be their unit increase in productivity per hour? d) What will be their percentage change in productivity?

Answer 1

Answer:

Production = 120 boxes

Efforts : 4 people multiply 10 hrs each per day = 40 hr per day

a) Productivity = production per unit time per person = 120/40 = 3 boxes per hr per person

b) new production = 125 boxes per day

New productivity = 125/40 = 3.125 boxes per hr per person

c) unit increase in productivity per hour = (3.125-3) = 0.125 box per hr per person = 0.125 multiply with 4 = 0.5 box per hr

d) percentage change in productivity = $(3.125-3) / 3 * 100$ =  4.16%